The naira, which rose to 180 against the dollar shortly after the inauguration of President Muhammadu Buhari about a month ago, has fallen to 222 at the parallel market due to a huge demand for dollars by importers and investors.


Increasing business activities have made importers and investors to move their foreign exchange demands to the parallel market, putting pressure on the naira at the segment, it was learnt on Tuesday.

The dollar was sold for between 220 and 222 on the streets of Lagos, Abuja and Kano on Tuesday, while the pounds and euro were sold for 350 and 249, respectively.
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Analysts and foreign exchange dealers said the future of the naira looked bleak, at least at the parallel market.

The Central Bank of Nigeria has been depleting the external reserves in a bid to defend the local currency.

At the interbank forex market, where the central bank intervenes regularly to defend the currency, the naira closed at 199 against the dollar on Tuesday, data from the FMDQ OTC website showed.

The external reserves fell to $29.03bn on June 22, from $29.8bn on May 18, data from the CBN website showed.

Prior to the latest development, the foreign reserves had been stable for several weeks.
Economic and financial analysts said the latest movements in the external reserves meant that the naira was beginning to come under some fresh pressure.

Concerned about the depletion of the reserves, the CBN met with bank officials on Friday to discuss
how to mitigate the pressure on the external reserves.

The CBN has yet to make the outcome of the meeting official but sources said the central bank wanted the banks’ cooperation in order to reduce the pressure on the reserves.

The bank officials, it was learnt, told the CBN that it needed to relax its rules in the forex market and allow the naira to find its level.

The officials, however, promised to take the deliberations at the meeting to the CBN Governor, Mr. Godwin Emefiele.

It is unclear if the CBN will accede to the demand of the banks to relax the rules in the forex market, but the spokesperson for the central bank, Mr. Ibrahim Mu’azu, could not be reached immediately for comments. Calls made to his mobile telephone line were not answered.

Last November, the CBN devalued the naira after spending several billions of dollars to defend the local currency.

The Acting National President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, told our correspondent on Tuesday that the naira’s outlook at the parallel market looked bleak, forecasting that the currency might fall to 230 against the dollar in the coming weeks if the central bank failed to deploy measures to curb the increasing dollar demand at the parallel market.

He said, “There is pressure on the naira again. Maturing import bills are making the demand for dollars to rise again. Most importers and investors are saying they could not access dollar at the official market.

“They are now turning to the parallel market, a situation that is now fuelling the demand for dollar and other foreign currencies at the parallel market.”

The Head, Research and Investment, Afrinvest West Africa Limited, a research and investment advisory firm, Mr. Ayodeji Ebo, said, “The CBN needs to do something urgently otherwise it (slide in the value of the naira) will continue.

“If the pressure continues, the CBN may devalue the naira. I think the CBN is also waiting to see the plan of the new government in order to align its monetary policies with it. Once the new government comes up with its plan, the CBN may devalue the naira. If that is done, foreign investors who have been waiting on the sidelines will come in.”

Source:http://www.nairausd.com/2015/06/naira-faces-fresh-pressure-falls-to-222.html

Finally! Yes! I made it. I dedicate this ftc to all those hustling to be ftc. May God crown your efforts. On the topic? be calm baba is calling on america and other western countries even our own zimbabwe to come to our rescue

ahhhhh

Buhari: My fiful shud be patient It will still rise to 1naira

Me: STFU Daura President

ECOTERRORS:
My fiful shud be patient It will still rise to 1n,aira

Pray for the nation.

ifyan:


Pray for the nation.

why should I pray when pMB has a pastor as his commissioner sorry VP

No difference in the last and the current Government yet, shey na like this we go dey dey??

ifyan:


Pray for the nation.

why should I pray when pMB has a pastor as his commissioner sorry VP.

When will President Buhari make it N1=$1

www.nairaland.com/attachments/2551779_2550773dullardinhojpegf548371f5f7f07a48e3f5024e913be89_jpege6bff973d0a8db09708fabc0d627381b

ECOTERRORS:
why should I pray when pMB has a pastor as his commissioner sorry VP.

Understand that you are of this Nation

Ezenwammadu:
When will babaonechance make it N1=$1

Are you dreaming

Nigeria is going down under Buhari. Where is the change Mr. President?

ECOTERRORS:
Buhari: My fiful shud be patient It will still rise to 1naira

Me: STFU Daura President

Baba is still learning on the job! Let's give the trainee president time to learn

Hope our beloved naira doesn't go the way of Zimbabwe Trillion dollars

Buhari abeg oooo! I no want carry Ghana must go to buy my "Agege Bread"

barcanista:
Baba is still learning on the job! Let's give the trainee president time to learn

imagine a trainee manager @ the helm of a blue chip coy?

barcanista:
Baba is still learning on the job! Let's give the trainee president time to learn

What has he been doing for the past 12 years?

ifyan:


Understand that you are of this Nation

Singing Jim reeves * this world is not my own, I'm just passing through

ECOTERRORS:
imagine a trainee manager @ the helm of a blue chip coy?

My Darling, we don't have a choice o. We brought it upon ourselves so we have to endure it. Sai Bubu

1bunne4lif:
What has he been doing for the past 12 years?

He has been soaking the dogs and baboon in blood

barcanista:
Nigeria is going down under Buhari. Where is the change Mr. President?

Nigeria will not go down IJN!

kay1one2:


Nigeria will not go down IJN!

Big Amen.

Chosen1984:
Hope our beloved naira doesn't go the way of Zimbabwe Trillion dollars

Buhari abeg oooo! I no want carry Ghana must go to buy my "Agege Bread"

lol

barcanista:
He has been soaking the dogs and baboon in blood

May be he has been busy begging the west to come to his rescue. Why would someone accept the responsibility what he clearly knows he cannot do. Grandpa is confused

The $2 billion that they would have added to the federal Reserve to increase Naira worth, instead they shared it yesterday pushing the Naira to greater free fall.

new2020:
The $2 billion that they would have added to the federal Reserve to increase Naira worth, instead they shared it yesterday pushing the Naira to greater free fall.

‘Nigeria’s Forex Reserves Too Low To Defend The Naira’

http://www.nairausd.com/2015/06/nigerias-forex-reserves-too-low-to.html

right b4 my eyes , my savings is depreciating like fvck

Job no dey, and small money i dey use they hold body, Nigeria would still stripe me of em

Ha, ogunlaka aye, all this ppl running anyhow Nigeria must not go scot free o






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It's only going to get worse except Mr.Buhari turns off this slow mode

must fall to 1 naira per 1 dollar o

Check my signature if you have problem satisfying ur wife in bed.zero seven zero three nine siX four zero zero nine seven